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A PROJECT REPORT ON IMPORT/EXPORT PROCEDURE & DOCUMENTATION AT FILTERCO NEEMUCH (M.P.

) SUBMITTED TO UNIVERSITY OF PUNE BY PAWAN KUMAR VAISHNAV PGDIEM(2010-2011)

Sinhgad Technical Education Societys SINHGAD INSTITUTE OF MANAGEMENT


S. No. 44/1, Off Sinhgad Road, Vadgaon (Bk), Pune 411 041 Ph: 020 -2435 8380/2435 8355 Fax: 020-2435 4835 Mob: S9881742711

Sinhgad Technical Education Societys

SINHGAD INSTITUTE OF MANAGEMENT


S. No. 44/1, Off Sinhgad Road, Vadgaon (Bk), Pune 411 041 Ph: 020 -2435 8380/2435 8355 Fax: 020-2435 4835 Mob: 9881742711 Email: siomdean@yahoo.com

CERTIFICATE
This is to certifying that Mr. Pawan Kumar Vaishnav of Sinhgad Institute of Management has successfully completed the project work titled as IMPORT/ EXPORT PROCEDURE & DOCUMENTATION at FILTERCO NEEMUCH (M.P.) in partial fulfillment of requirement for the award of PGDIEM prescribed by the SINHGAD INSTITUTE OF MANAGEMENT. This project is the record of authentic work carried out during the academic year 2010-11. He has worked under our guidance and direction. His work is found to be satisfactory and complete in all respect.

Dr. Daniel Penkar (DIRECTOR) GUIDE)

Prof. A.C. Panda (PROJECT

PREFACE
To manage a business well is to manage its future; and to manage the Future is to manage information. An expect of management education is to under go winter training into corporate world and then make an evolution of it. Companies offer the winter trainees wide varieties of interesting and challenging project to choose from as well as on the job training of Export Procedure and Documentation. Winter training requires that the student attains practical experience in an industrial organization for a period of about one month. The winter project investigates some significant aspect of problems of an organization. It gives students an opportunity to observe a business organization in operation and sharpen their knowledge and skills by putting them to use. Winter training enables the students to undergo research work. This training enables individuals to make a better informed career choice regarding both functional specializations and type of organization. Winter project being time bound has a limited scope of looking in depth the exact working policy of each and every department of an organization. Yet it is sufficient for the student to apply the management concept to the real life situations and at the same time enhance our skills at judgments and creativity. As a Finance management student, I was exposed to the corporate world during my winter training at a renowned production company in india and in the world i.e. FILTERCO. This training help me a lot, as it was instrumental in making me aware of my strengths as well as weakness. This training has developed in me the practical and problem solving result oriented situational approach towards management.

Table of CONTENTS
Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. ACKNOWLEDGMENT OBJECTIVE INTRODUCTION INTRODUCTION OF THE COMPANY METHODOLOGY DIFFERENT DEPARTMENTS IN COMPANY EXPORT PROCEDURE IN FILTERCO OBSERVATION FINDINGS RECOMMENDATION/SUGGESTION CONCLUSION BIBLIOGRAPHY ANNEXURES Title Page No.

ACKNOWLEDGEMENT
I express my deep sense of gratitude, indebtedness and regard to my project guide Mr. R.K. Sharma (Sr. Dy General Manager, Sales Co-ordination Department, FILTERCO, NEEMUCH M. P.) for his assiduous guidance and inspiring suggestions during the project report. I am also thankful to Pankaj Kumar, (Asst. Manager, Sales Co-ordination Dept.), FILTERCO for his kind co-operation in this project. I am also thankful to Mr. Arvind Kumar,(Manager, HRD, ) for his kind cooperation in this project. I am also thankful to Filterco for providing some lighter moments and made our stay pleasurable.At last we are thankful to our honorable director, Dr. Daniel Penkar, and project guide and co-ordinator Mr. A.C. Panda.

OBJECTIVE

Project objective :
a. To understand the FILTERCO Business Processes. b. To understand the working of the various of department of FILTERCO contributing towards processing an export order. c. To understand the role of Merchandisers in FILTERCO. d. Export Procedure. e. Export documents. f. Documents required for negotiation, purchase, discounting. g. Steps in export letter of credit. h. Mode of payment. i. Different ways of consignment.

Objective of the study


1. To study the registration procedure for the export. 2. To find out the international business Scenario. 3. To study the export procedure and documentation for FILTER CO. 4. To find out the procedure for the membership in export promotion council and DGFT.
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5.

To find out the difficulties in export procedure and documentation .

SCOPE:
1. The scope encircle export procedure and documentation of FILTER CO 2. Pre-shipment and post shipment documentation in export are studied in detail. 3. The tribulation faced by FILTER CO . 4. Study of area of exporting new market and diversification of the product. 5. Study of international buying behavior.

LIMITATIONS:
Export procedure is very vast area and so training program of 50 days is insufficient.

1. As the working place being away from the actual export procedure transition hence only theoretical aspects of the export procedure could be covered.

INTRODUCTION
Background of the problem task undertaken
IT IS an opportunity to do the summer internship in the FILTERCO Industry which is manufacture and the exporter of the pressed wool felts. As we know, exporting is the complex and challenging activity in todays dynamic world environment as it involves the performance of operation that determine existing and potential demand in market. Learning the step-by-step processes and procedure to be followed in an export contact is a crucial activity in export procedures, selecting the project on export procedure is an obvious and important decision.

STATUS OF INDUSTRY : The textile industry in India occupies a unique position in our economy contributing to nearly a third of the countrys export earnings. This industry manufacturers, suppliers, wholesalers and exporters of cotton textiles, handloom, woolen textiles etc. From the production of textile machinery and equipment, dyes
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and raw materials to the delivery of finished textiles, fabric and garments the textile industry in India has the vast potential for creation in of employment as it Textiles industry is the second major employer in India after agriculture, providing employment to 91 million people according to an ASSOCHAM Eco Pulse study titled India Textile Scenario. The number of textiles manufacture, suppliers, wholesalers and textiles export in India is counted among the most important sector. It contributes about 13 per cent in export earning and 4 per cent in Indias GDP is still suffering the heat of global slowdown as indicated by declining exports and massive layoffs. Textile exports during April-March 2008-09 registered a decline of 1.71 per cent from USD 22.13 billion in AprilMarch 2007-08 to USD 21.75 billion. Among the maximum hit segments, handicrafts registered maximum decline of 48.35 per cent in 2008-09, from USD 3481.14 million in 2007-08 to USD 1797.88 million. sector registered 50 per cent increase in investment during 2008-09 to Rs.49,613 crore from Rs.31,161 crore in 2007-08. But as compared to the year 200607 the sector registered 48 per cent decline in investment. However, in 2006-07, Rs.90,369 crore of investment was poured in textile sector. According to the Chamber, an investment of Rupees one lakh in power loom sector creates
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about three jobs, hence the government should create an investment friendly environment and provide low interest rate loans to investors and should also provide export profits be made tax-free in slow down period to encourage the export. How have textile exports performed against this backdrop? Fortunately, after a period of low activity, the scenario is fast undergoing a change for the better and in a positive direction leading to higher growth. As Indian textile industry, which has accelerated to an annual growth of 9 -10 per cent , is expected to grow at rate of 16 per can in values and reach a level of USD 115 billion by 2012 , UNION MINSTER STATE FOR TEXTILES E V K S Elangovan said that growth can be fuelled by both exports as well as a rise in domestic consumption, resulting in India's share in the global textile and clothing trade moving up from the current three per cent to seven per cent by 2012. This trend augurs well for India and is a clear indication of a shift in production base from raw materials to value added products with the VALUE being captured by Indian producers. With all forecasts by leading towards greater trade in analyst , pointing

INTERNATIONAL MARKETS in

processed/ finished goods rather than raw materials, Indian appears to be positioning itself well to increase its market
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share in

WORLD

trade in merchandise

export. The

ASSOCHAM has stated that despite marked improvement in the financial position, the Indian textile continue to face serious issues involving transaction cost and raw material. The government should focus on infrastructure facility related to the supply chain and provide low cost logistics service to the sector. The sector suffers from high power cost and lack of power supply. Effective power management system has to be put in place. States should offer power at low cost on the incentive based system for the new investment made in the textile industry for commercial production. The sector requires higher technology up gradation and active involvement of new technology. ASSOCHAM recommended that government should further increase funds under the Technology Up gradation Fund Scheme (TUFS) for textile firms from Rs 3140 crore to Rs 4500 crore and release appropriate funds to clear the existing backlog of subsidy payments and upgrade technology of textile units.

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INTRODUCTION OF THE COMPANY


COMPANY PROFILE: FILTERCO company is a 50 cr US dollar textile conglomerate driving critical industries. They are century old pioneers in their area of specialization like of wool felt rolls ,sheets, seals, wicks, gaskets, strips, felt polishing wheels, knife edge discs, cones, mounted felt bobs etc.The organization is manufacturing Pressed Wool Felts since 1968. The quality consciousness, competitive pricing and the capacity to satisfy the customer's specific requirements have given us a firm footing in marketing their products successfully at home and abroad. They have complete manufacturing expertise to manufacture Pressed Wool Felts conforming to all International standards. They also have their associate Units where they have facilities like Slitters, Cutters, Hydro-Pnuematic Presses, CNC Kiss cut Press, Hydraulic Presses, Splitting Machines, Vacuum Impregnation Plants, Adhesive Coating/Lamination machines and tool room for Die making etc. These facilities enable them to
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fabricate the Custom-built parts to suit individual customers requirements. This organization is made up of four major groups, each led by the best manufacturing and managerial talent in India. In addition to manufacturing they have interest in civic utility systems. This unit, multi-products, multi-location conglomerate is built on the plinths of experience, expertise, quality, innovation & values in the business. Their best play is successful work & creation of a new industrial order they can provide tailor made solution to the customers. At Filterco, listening the customers and his needs is a tradition as old as the group itself. For it is they who drive us future, make us reach higher & better solutions. In the customers often unspoken wish for better implements lies the seed for a new invention, a path-breaking industrial concept.

COMPANY DIVISION:
The groups consist of 4-companies from the core of filterco Groups. Each company is a renowned name in its own area of operation and is respected world wide for its service & products. For us manufacturing is not just a limited to our factory premises & our products. It is also about world class services. FILTERCO .PVT LTD. SEAL WELL. BLUE CHIP.
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TEX FELT.

Companys Achievement:
Reward and recognition They are awarded for the Highest Exports by the Govt. Of India for the last 6 years in a row which speaks volumes about their satisfied customers all over the world.

IN

1986 The CEO Mr. D.S.CHORDIA receiving the Udyog Patra

Award from Mr. M.HIDEYATULLAH,PM of India at FICCI auditorium, NEW DELHI on 20 t h December 1986. In 1992-1993 Certificate of merit in hair belling felts. Award for the highest export performance.

In1992-1993

In

In 1993-1994 Certificate of merit in hair belling felts. 1994-1995 Award for the highest export performance. In 1995-1996 Biggest Export performance 1995-1996 Certificate of merit in hair belling felts.
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In

In In

1996-1997 Biggest Export performance. 1997-1998 Award for the highest export performance. In 1998-1999Award for the second biggest export

performance.
In

1999-2000 Biggest Export performance. 2000-2007 Biggest Export performance.

From

FILTERCO CAPACITIES

SECTION Felts sleeve Roller Covering Felt Flap Wheels and discs Wool felt polishing Wheels and Discs Felt and Non-Woven rolls Industrial felts component

CAPACITIES(monthly) kg 80,000 110,000 90,000

100,000 80,000

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Woolen felt planting sheet

100,000

CLIENT COUNTRIES INTERNATIONAL CLIENT:


CUSTOMER CLIENT

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Technofeltro. Lampe technical. Joh.Birkenstack Brand felt. Hardy & sons ACEE auto Ahuja . Ahuja Ahuja British felt . S.A FELT . Closeal . Custom Seal. Ahuja . Ahuja Aypa talstil

ITALY HOLLAND. GERMANY. CANADA. ENGLAND AUSTRIALIA AUSTRIALIA SINGAPUR MALASIA U.K SOUTH AFRIACA SOUTH AFRICA SOUTH AFRICA NEWZELAND POLAND TURKEY.

DOMESTIC CLIENT

Customer

Client
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B.R.wool agency . Modern wollen. Sarvesh wool tax . Kamal Industries . Marutex wool Industres.

LUDHIYANA BHILWARA .LUDHIYANA .BIJAYNAGAR LUDHIYANA

PRODUCT PROFILE
Although wool felt is the Worlds oldest textile structure and it has been practically in every industry, generations of engineers and
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materials science/specifiers

are growing up without knowing much

about much about this remarkable material. Over 130 years of continuous industrial development has demonstrated the versatility of wool pressed felt as a material that has far surpassed any other textile material in the depth and breadth of its applications. FELTS is a textile structure composed entirely of fibers physically interlocked and consolidated by the utilization of mechanical work, chemical action and moisture without the use of weaving, knitting, stitching, thermal bonding or adhesives. it composed wholly of any one or a combination of new or recycled wool fibers. Part wool felts, is a felt composed of any one or combination of new recycled wool fibers mixed with one or more man- made fibers, vegetable fibers, etc.

FELT SPECIFICATION NUMBERS :


Felts are governed, in India, by Speen. IS 1719.In the International market, these are governed by SAE specification F-1 to F-55,DIN specification , No.61200,Fedral speen.CF 206 , British Speen, No.BS4060 and U.S.S.R. Speen.No.Gost 6308-71.

Different forms of wool felts:

A. Felts sleeve Roller Covering


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B. Felt Flap Wheels and discs

C. Wool felt polishing Wheels and Discs

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D. Felt and Non-Woven rolls :

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E. Industrial felts component :

F. Woolen felt Plating Sheet :

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Pressed Wool Felt Stocking Grid


Stock = In Stock S/O = Special Order More Product 1/16" 3/32" 1/8" 3/16" 1/4" 3/8" 1/2" 5/8" 3/4" 1" F-1 F-2 F-3 F-5 F-7 F-10 F-11 F-13 F-50 stock stock stock S/O stock stock stock stock stock stock stock S/O stock stock stock stock stock stock Stock S/O Stock Stock Stock Stock Stock Stock 24

than 1" S/O S/O S/O S/O S/O S/O S/O S/O -

stock S/O stock stock stock stock stock stock -

Stock S/O Stock Stock Stock Stock Stock Stock -

stock S/O stock stock stock stock stock stock -

stock S/O stock stock stock stock stock stock -

stock S/O stock stock stock stock stock stock -

F-51 F-55

stock stock stock stock -

Special Orders normally require a 3-4 week lead time and a manufacturing minimum. Items designated as in-stock are normally inventoried, but may occasionally be in the process of being produced, thus requiring a 3-4 week lea

BASIC FUNCTION OF WOOL FELTS AND SOME CURRENT APPPLICTIONS:-

POLISHING AND DE-BURRING Storing, Wicking, Syphoning, liquids, Lubricating

Finishing

optical

and

ophthalmic

lenses;

polishing plate glass plastics ,felt hats ,etc; buffing wheels for shoe machinery. Felt-nib marking pens and ink reservoirs, armature shafts, spindles and many other

Transferring Stamp pads, Journal lubricating wicks for inaccessible mashie part ,Wicking material for copying machines, Cosmetics Transfer rollers,

Wiping devices. Spacing-Washers Gaskets, Gaskets for auto , arc and flood light. Gaskets packing. in home clothes dryers, refrigerators, Glass covered electric meters. Gland fuel Sealing packing for and supply pumps. Washer in nuclear

reactor equipment. Rotating/ oburating bands for gun launched projectiles, plain and laminated felt seals to protect ball and roller bearings. Weather stripping. and Covers for bases of lamps , fan and trays, etc Card table covers. Lining and in soles for 25

Surfacing, Cushioning

Padding

shoes, wadding boots. Saddle pads, Cushioning material foot in mechanical Knee pads processes. for horses. Padding Display under batteries in vechiles. Corn and callous pads. Jewellery silverware and other cases.

Vibration isolation Shock Felt absorption absorption and

pads

for

heavy

textile

and

other

sound machinery. HI-FI speaker enclosure. Computer Isolating sensitives/ delicate instruments from vibration /shock during shipment or from floor or building vibrations

Filtration

Respirators oil fired heating equipment .Air compressors , Separating water from gasoline . filtering electroplating solution , organic solvent , oils photographic emulsion , etc

Frictional

Provides traction to pull strip brass through the cleaning bath in rolling mills and in jacking hides in a tannery .Black Board dusters, Auto windows channels.

Thermal insulation

Insulating refrigerators and cold piping .Boot lining. Military Arctic weather boots

Percussion controls

Percussion pads , hammers , dampers, back check, wedges, venners, stops , etc for pianos . Beater balls for drum strikes, stickers for chimes.

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METHODOLOY

Methodology means the source through which the data is collected and which is necessary or important for the study. There are two sources of this study :

Main source Secondary source


1. Main source : In primary source, data was collected through interviewing the export executive and the marketing person. Also I had collected the information from the other staff.
2.

Secondary Source : Data that is already published in various publication or

information already available is collected and combined and presented earlier by researches is secondary source. a) Import and export policy b) Export procedure handbook
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c)

International marketing.

Secondary data is extensively and intensively used for present research work. The discussions with various officials in the company have helped to understand the basic concepts and procedure.

TO UNDERSTAND THE DIFFERENT DEPARTMENT IN FILTERCO


DIFFERENT DEPARTMENT IN FILTERCO
Company mainly deals in two segment of the felts supply chain i.e. one is manufacturing of felts and other is manufacturing of non woven felt. These two segment department Description each having are different processes but are very different function and responsibilities. to how they much linked in the supply chain. The company has specified of each department will follow in respect

occur in supply chain.

Cotton department
Cotton is one of the most important raw material for the wool felts manufacturing. Company purchase the cotton from different industry and from some other countries such as WEST AFFARICA and US. Cotton department is responsible for placing order of cotton to the
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mills. Their responsibility is to make sure cotton is order from right supplier ,delivered in right time with desired quality and maintain stock listing of cotton. Cotton department is also responsible for checking the quality i.e strength, colour, and quantity of cotton department. The decision regarding the cotton quality, quality and strength is decided by the by PPC i.e. production, planning and control department.ppc place order one month in advance.

Opener department
Opener department is responsible for producing dust free cotton from raw cotton. In these the opener machine is used so that cotton can get the proper and perfect density and also the opener is responsible for bunch free cotton of easy smoothing in the different processes. Felting was originally based upon the physical characteristic of crimp and scaly surface that cause them to cling and intermesh and allowed them to be pressed into a compact fabric. the felt is made with or without admixture of another animal fiber, vegetable fiber, or manmade fiber. opener department receive order from PPC stating order or style number and quantity of the cotton required.

Carding department
Carding department has the same responsibility as the opener department has. but in these there is machine called cardner. where the cotton goes under the carding machine so that it get free from bunch of bundle. and there is also the Roll carding machine which help in making sheet from the wool as per prescribed by the PPC. it has been supposed that 5 kg of woolen is of 1mm .
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Washing and dyeing department


The department is responsible for two different stages in wool manufacturing. For grey(not colored)felts, department is responsible for the coloration of wool and for dyed (colored) felts, department is responsible for washing. the process of machine based on the order from the PPC dyeing is time consuming. The department making the production plan for dyeing and washing

Hardener department
Hardener department is responsible for giving the proper hardness and the density. In this the wool sheets goes under the hardener where it get steam from the boiler so as to get hard this is done as per the prescribed by the PPC the hardness can be change according to the demand. there is also machine called MILLING machine is used where the sulfuric acid and dazzle powder is mixed so that it get proper hardness and density .

Cutting department
The department is responsible for the for cutting of sheets into the different shape and rolls. This department is mainly responsible for cutting and avoiding waste. To ensure the minimum wastage,skills employees are their .the cutting is done according to the density given by the PPC.

Finishing and packaging department


This is the final stage before the wool felts is ready to shipped. As the wool felts are already finished, it requires the series of quality check.
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The felts goes for check like density test ,hardness test ,washing test etc. after which it is steam pressed , labeled ,packed put into the cartoon. Once all the cartoon are packed and labeled , external quality placed check takes place and goods are shipped.

Production, Planning and control department


The department is responsible for making plan for the entire organization i.e. all the department.PPC is the centre of all the department also control functionally. The PPC send production plan to different department on weekly basis and daily for any amendments. The PPC keeps check on different departments by requesting planning and production report for every day.PPC only receives order from the top management. with order quantity and dispatch date. it does the planning for the product cycle. The top management is continues contact with PPC

The PPC link with other department

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Merchandising department
The department act as a liaisons between the buyer and manufacturing division . on one hand, the department is responsible for the notifying in the product to the PPC and also to make sure that the article is produced as per planning by the PPC and within dispatch time limit. On the other hand it has to continually update buyer with planning and production status. The department is also to take care of all corresponds with buyer and is responsible for comminuting it to PPC. the department is also responsible for the necessary sampling such as proto, size set and final which is necessary prior to production .

Merchandising

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The companys marketing team endeavor to enhance its share of business with existing customer as well as the customer base. The company receives order from customer by Growth in business for existing customer New customer developed through cold calls, trade fare meeting Walk in-customer The companys marketing team has been able to diverse different strategies to suit the need both existing and new buyer. For the existing buyer, the company prime project is to expand the product base and enhance volume .By leveraging the long standing relationship with the buyer, the company strives to preferred partner to the buyer. For the new buyer, based on understanding of their product range and brand identity/ customer identity, the company present to them to their entire project range. This give them good idea of areas of the companys expertise and capability. Sometimes the buyer comes to FILTERCO with their thought on different size and density, where they offer their suggestion on modification. In case where they come to FILTERCO with predetermined size requirement, they also try to add value for suggesting modification to enhance functionality or to reduce cost while retaining the existing size. FILTERCOs skilled worker gives the desired size and density along with the sampling department provide the client with prototypes, which undergoes various alteration till the client finalize the size. Once the size and density is finalized it is translated into sample size as quickly as possible because the entire seasons business depend on timely delivery of sample. The costing exercise is done concurrently at this stage. FILTERCOs manufacturing scale and efficiency and global sourcing ability enables .FILTERCOs to compete with international vendors effectively. This is proven by the growth of the Company in non-quota categories, where competition has already
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been open without any quota related barriers. Quality and ability to deliver the required products on time and competitive pricing enables to enhance share with customers

TO UNDERSTAND THE EXPORT PROCEDURE IN FILTERCO INDUSTRIES To understand the Export Procedure in FILTERCO Industries.
It is essential that a person engaged in international trade be aware of the various procedures involved. The business of exports is heavily document-oriented & one must get acquainted with the entire procedure. Failure to comply with documentary requirement may lead to financial loss.
5.1

Pre-Shipment Procedure : On receiving the requisition & purchase order from merchant, documentation department issues an invoice. Two invoices are prepared i.e. commercial invoice & custom invoice. Commercial
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invoice is prepared for the buyer & Custom invoice is prepared for the Custom authorities of both the countries. Packing list is prepared which details the goods being shipped. GSP certificate is prepared if the consignment is exported to EU or countries mentioned in the GSP list. Buying house inspects the goods & issues an inspection certificate. Certificate of origin is also issued and attached, if required. Following documents are given to Customs for their reference: Custom Invoice Packing list IEC certificate Purchase Order or L/C, if required. Custom annexure On receipt of above documents, customs will issue clearance certificate. After custom clearance a set of documents with custom clearance receipt are sent along with the consignment to the forwarder. Forwarder books the shipment & as per the size of the cartons calculates CBM & decides which container to be used. Following documents are sent to buying house for their reference, as per buyers requirement: Invoice Packing List GSP (if exports to Europe) Certificate of Origin (if required)
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A copy of FCR/ Airway Bill/ Bill of Lading Buying house then intimates the buyer about the shipment & gives the details regarding it. Buying house will send a set of these documents to the buyer. Buyer collects the consignment from the destination port by showing the following documents: Invoice Packing List Bill of lading/ FCR/ Airway Bill On shipment of goods, exporter will send the documents to the importers bank

Post-Shipment Procedure
A foreign buyer will make the payment in two ways: TT ( telegraphic transfer) i.e. Wire Transfer (Advance payment, as per the clause 50% advance & remaining 50% on shipment) Letter of Credit If the payment terms are a confirmed L/C then the payment will be made by the foreign bank on receiving the following documents: Invoice Packing list B/L
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Any other required by the buyer or the country of import. The payment terms can be: o At Sight o Within 15 days from Bill of Lading or Airway Bill date. o Within 30 days from Bill of Lading or Airway Bill date. o Within 60 days from Bill of Lading or Airway Bill date. o Within 90 days from Bill of Lading or Airway Bill date.

After shipment, exporter sends the documents to the buyers bank for payment. As the buyers bank receive the documents it will confirm with the buyer for release of payment. On confirmation, it will make the payment in the foreign currency. The transaction will be Bank to Bank. The domestic branch will credit the exporters account, as against the respective purchase order or invoice, in Indian rupees by converting the foreign currency as per the current bank rate. If the payment is through wire transfer, the payment will be made as per the terms agreed by the exporter (Advance payment, as per the clause 50% advance & remaining 50% on shipment).

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Registration procedure of FILTERCO


Export procedure contains standard step for the business. It can be done through direct or indirect way. Before starting Export of any product, one has to get registered itself under IEC & RCMC. A. Registration under Importer-Exporter Code ( IEC): Registration under Importer-Exporter code number is basic

necessity for the export business. The registered office of the applicant shale make am application for grant of IEC to the licensing authority. Thus following documents should support dully signed application:

Bank receipt (in duplication)/DD of Rs.10000/38

Income tax PAN NO. Photocopy of RBIs approval of Non-Residents interest if any in the form of company.

The licensing Authority concerned shall issue an IEC number. A copy of such IEC number shall be endorsed to the concerned banker. An IEC no. allotted to an applicant shall be valid for all its branches/division/units/factories as indicated in the format of IEC

Registration with Export Promotion Council (RCMC):


To obtain benefits under the export-import policy, companies are required to register with an appropriate promotion agency by obtaining registration cum membership certificate i.e. RCMC.

EXPORT DOCUMENTATION AT FILTERCO.

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List of documents, which are used at FILTERCO pvt.ltd are as under: Invoice Packing Slip Airway Bill or Bill of Lading Shipping Bill Certificate of origin Bill of Exchange Generalized System of Preference Canada Custom Invoice Letter Of credit Bank certificate of Export and Realization (BRC) Insurance

Following are the detailed elaboration of the above listed export documents:

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INVOICE:
It is the document, which is compulsorily needed in the export documentation. It consists of buyer name, notified address, country of the final destination and origin of goods, term of delivery and payment, place of delivery, port of loading and discharge. It consists of the items; quantity and description, which have to be exported with the total, amount in foreign currency or may be any other currency. At FILTERCO the company used Dollar as the currency for invoicing. This is the proof of the sale of goods to the buyer. The invoice number is required in each and every document. It is also used to customs for the clearance of the goods. The copy of invoice from FILTERCO is attached in the annexure no.1.

PACKING SLIP:
The pre shipment department prepare packing list. The list is sent to buyer along with the goods. The packing list contain the details or the description of the item in each carton. It consist the Invoice Number, Letter Of Credit no.,total Quality, Total Carton, Carton Dimensions, Net weight and Gross Weight. The list help the importer to know and identify the item without opening and counting the goods in the carton and he can also sell the carton to the buyer without opening the carton, because the style, color, sizes are mentioned in the particular carton. Thus packing lit contain all the details of the yarn containing in the carton. The copy of packing list from Filterco is attached n the Annexure no.2
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BILL OF LADING OR AIRWAY BILL :


Bill of lading is the receipt given by the transporting company to the exporting firm. This document state that the payment is made by exporting company and the good has been received in their hand for forwarding the goods to the destination. Airway bill is followed only in the case of transportation by the air, whereas Bill of Lading is used in the case of sea transportation. Bill of Lading and Airway Bill is Negotiable Instrument. The Bill of Lading or Airway Bill contains the name of exporter, Importer, Loading Vessel, Port of Loading, and Port of Destination. It also include the marks and nos. on the carton, description of goods, LC no., Gross and net weight. FILTERCO almost 90% transportation was through ship while the sample is send through Airway. The Bill of Lading is send as per the letter of credit terms. The copy of Bill of Lading of FILTERCO is attached in Annexure 3

CERTIFICATE OF ORIGIN:
Certificate of Origin is the document in which the authority certifies that the goods as described as originated in the country in accordance with the provision in force in the European Economic Community. This certificate is a statutory proof that the goods produce or the
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material used or the exporter or the seller of the good is of a particular state. At FILTERCO is located in Neemuch the certificate is issued by the MUMBAI chamber of Commerce and Industry. The copy of the Certificate Of Origin used FILTERCO is attached in Annexure 4.

SHIPPING BILL:
Shipping Bill is the document of clearance from the custom department. This Document helps in getting the green signal to the forwarders to go ahead with the goods towards its final destination. This document consist details as under i. Exporters Name and Address ii. Consignee iii. Port of Loading iv. Port of Discharge v. Duty Entitlement Pas Book (DEPB) Specification vi. Duty Drawback Specification vii. Invoice No. and value viii. Item Description ix. Vessel Name

Some port in India follows manual procedure of issuing Shipping Bill while some of the port follows EDI System. The Electronic Data Input
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system (EDI) is located only in some important port. Chennai port follows the EDI system while the Tutocorin port follows Manual method System. GENERALISED SYSTEM OF PREFERENCE (GSP)GSP is issued by the Export Inspection Agency. The document is issued as per the import needs. This document is for the developing countries like India while exporting goods to the developed countries. The countries that require the GSP document are as under.

D.

Australia Canada Japan New Zealand Switzerland USA Republic of Belarus Republic of Bulgaria Czech Republic Russian Federation Denmark Germany

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Greece Spain France Ireland Italy Luxembourg Finland Sweden Luxembourg Finland Netherlands United kingdom GSP is issued in case of exporting the goals to the above mentioned developed countries. Due to this certificate the importers country give some benefit to the importer like low import duty and many other benefits. Thus the incurring cost for procurement becomes low which collectively will be beneficial for the importer to import from the developing countries like India. Hence more imports will be taken from India . thus India will enjoy the increasing number of export of the goods. There are some general condition to qualify for preference, product must
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A. Fall within a description of product eligible for preference in the country of destination. The destination entered on the form must be sufficiently detailed to enable the product to be identified by the customer officer examining them. B. Comply with the rules of origin of country of destination. Each article in a consignment must qualify separately in its own right and C. Comply with the consignment condition specified by the country destination.

Procedure for claiming the GSP


A declaration on the certificate of origin from must be prepared in duplicate together with the GSP application from to the certifying authority of the exporting country .The authority after inspection if satisfied then certify the top copy of the Certificates of origin and return the top copy to the exporter for the communication with the importer destination .At the same time the certifying authority returns the duplicate copy of certificates authority returns the duplicate copy of the certificate of origin but will retain the GSP application from duly completed and signed by the exporter.

The copy of the GSP of FILTERCO is attached in annexure

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Canada customer invoice : The Canada customer invoice is prepared when the goods are to be export the goods to Canada. This invoice is used customer office of Canada as the requires the invoice. The Canada

customers require the declaration of the goods in their specified format. The customer in Canada have their own specified invoice format.

LETTER OF CREDIT :
Letter of credit is the pre-shipment document. This document states that payment will be made to the exporter by the importers bank if the required document are presented to the bank within the validity of the letter of credit. Following is the working of the importer and exporter regarding the letter of credit. The exporter requests the importer to issues of credit in his favor. The importer request his bank to open a letter of credit The importer bank open letter of credit and forwards to the exporters bank The exporters take the possession of the letter of credit The exporter supplies the goods and present the full set of documents along with the draft to the negotiating bank.

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The negotiating bank then scrutinizes the document and if they are in order makes the payment to the exporter.

The issuing bank will reimburse the payment to the negotiating bank The letter of credit is annexed in which is used in FILTERCO

Bank certificate of export and realization:


This is the last document, The which s involved in the export This

documentation procedure.

bank issues

the document.

document completes all the procedure of export i.e from the order received to goods dispatched. the bank issues this certificates when all the formalities have been completed from the exports side . When the importer inspect that all the legalities and the good have been arrived as per their agreement then importer or buyer orders his bank to realize the cash to the exporters bank .after receiving the exchange the bank issue this certificate (BRC). BRC includes the specification

Date and number of invoice Date and number of shipping bill Country of destination Bill amount Freight amount as per bill of lading or air bill Date of realization of export
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This certificates includes all the necessary of every necessary export document. The bank keep the records of all necessary transactions the company has maintain against the letter of credit. This certificate also helps the bank to allow the foreign exchange document and found to be correct. the company has earned. Thus BRC certify that the bank have the relevant has earned. Export

Bill of exchange
These are unconditional promises drawn by the exporter instructing

the buyer to pay the efface amount of the drafts bank in both the end act as an intermediary in this processing of shipping document and collection of payment. in banking terminology the transaction is called as documentary transaction . The bill of exchange used.

INSURANCE:
To overcome risk we need to insure the good .at the filter co there is the system of taking the bulk insurance of some amount then as and when there is shipment with the CIF terms then the insurance policy is taken with the notification to the insurance company.
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Different ways of consignment methods used in Export Trade in FILTERCO: In order to deliver goods to the clients, traders and suppliers have to choose among a variety of consignment methods. They generally evaluate a few aspects before deciding upon the shipping mode. These aspects are: i. Whats the Business size ii. Cost Factor. iii. Product safety Concern iv. Product deliverance time v. Products to be delivered Mode of consignment can be evaluated by following intrinsic characteristics. i. Quick delivery ii. Price Comparison iii. Product protection iv. Convenience to client and trader Different ways have different advantages and limitations. Few are safer, some actually quick and others have an advantage of being low cost. You can decide any of the ways discussed below which suits you necessities.

Air transportation:
This way is quickest and much safer mode of transportation. Despite of being secure and rapid, suppliers (especially the small ones) are
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often unwilling to use this method, mostly because of high price associated with it. This should be supportive when transporting some high-value products or when a rapid delivery is required due to seasonal factors or goods of perishable nature. In FILTERCO mainly used air transportation for the samples delivery.

Sea transportation:
Most probably the oldest way used in export import for foreign supplies. In olden days traders voyaged by means of sea, carrying numerous products and items to trade in overseas nations. Economical but fairly slow, certainly not a fine choice when fast delivery is desired. However, when the time is not a concern and consignment is fairly big or bulky, naval transport becomes a usual alternative. Mostly all consignment in FILTERCO is done by the sea transportation.

Road transportation:
This is the widely used mode, particularly in local trade. Even when water or air transport is the main source of consignment, road transportation is still desirable to carry the items from harbors to consumer. Although restricted to local trade, this way is both time saving and economical and facilitates door to door delivery by connecting to the sea and airport. FILTERCO used this transportation for local trade generally.
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OBSERVATION
After studying the companies export procedure and documentation following observation are made.
1.

The procedure of exports and imports is very time consuming since

at all levels govt. and semi govt. agencies are involved. At every stage loss of time is there which is a great hindrance in the foreign trade. 2. Paper work is very much. There are many step involved in foreign in both trade procedure. At every step, paper work has to be done

exports and imports, which in turn increase the transaction cost. Thats y now All documentation is done by software, which lead to quick work. 3. Much time spend on shipment of goods and custom clearance.
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4. 5.

Firm has to pay losses while receiving cash due to fluctuation in The client countries also include the countries where lots of

foreign exchange prices. documentation is required.

FINDINGS
1. 2. 3. 4. Friendly atmosphere Dedication, teamwork and coordination Follows an autocratic cum democratic style of management All higher positions of the company are filled up within the

members of the Filterco family

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RECOMMENDATIONS/SUGGESTION
There should be some harmony between the directors and the employees. While undergoing the study various flaws regarding

documentation process , loading point, dispatch area and transportation was observed. During this period of our study various pit falls and problems in existing system we found so to provide FILTERCO a better future various options has been chalked out.
The company should try to advertise its activities through Internet and direct mails to its target customers.

Prices should be made competitive to match the export

standard, which may be done through Economic of scale in this globalization era.

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In order to be successful in export one must fully

research in market. No one should ever try to tackle every market at once. Many enthusiastic persons bitten by the exports bug fail because they bite off more than they can chew. The fewer intermediaries one has the better, because intermediary. Deliveries must be done on time. Customers and good must be provided with after sales services, it Communication whether internal or external must be far-reaching Risk of failure in export marked can be minimizing by intelligent

will help customers and goods to survive more and better and speedy Good communication is vital in export. use of research.

As per our analysis loading cycle time can be reduced by on-line system entry. As the truck reports the truck no., transporter name etc. must be entered into the system by the security officer. The information provided is uploaded by sales dept. The sales dept. then makes the loading advice memo entry in system accordingly and the dispatch dept. generates this loading memo and starts further process. There should be a foolproof system of controlling, approving the placement of vehicles by logistics section to work under a committee comprising of 2/3 persons with empowerment to take decision. Painting & Printing of the reels should be done well in advance before the placement of lorry. Also materials should be traced well in advance.
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There should be a change in layout of loading cycle which creates some problem for heavy vehicle to weight. This arrangement should be made easy and straight so that the process involved take less time. For example the weigh bridge should be placed near gate no. 3 which surely reduces the time in this period i.e. loading cycle period. There should be some substitute for the weigh bridge in-change in case if he goes for lunch & other miscellaneous activities

CONCLUSION

After understanding the ground realities of foreign/international trade it is crystal clear that services are major factor should be kept in mind at any moment of time. Transparency in work, proper communication, systematic

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preparations of documents, punctuality are some of the major process for a department which deals with import/export process of a company. Accuracy in documents is very important. Exporters are required copy of invoice and packing list. A standard of this document is always preferred as it helps to understand the information in a correct and broader manner and which ultimately saves time in the process.

BIBLOGRAPHY
www.ieport.com www.indiamart.com Ministry of textile
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Export procedure.

Books A) The Management Of Business Logistics----COYLE -----BARDI -----LANGLEY B) Export Import Procedures And Documentation. ----Dr. Khuspat, S.Jain (Himalaya Publication) ---M. L. Mahajan.

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ANNEXURE

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